World reports

Stocks to watch

TOKYO, Jan 23 AFP

January 23 2013, 11:50AM

Tokyo stocks have opened 1.25 per cent lower after the Bank of Japan's new monetary easing policy mirrored market expectations, disappointing investors who had hoped for stronger measures.

The benchmark Nikkei 225 index was 134.33 points lower at 10,575.60 at the opening bell on Wednesday.

"The BoJ (Bank of Japan) monetary policy announcement came so completely within range of market expectations that it rang as a disappointment," SMBC Nikko Securities general manager of equities Hiroichi Nishi told Dow Jones Newswires.

The BoJ on Tuesday adopted a two-per cent inflation target to tackle the country's long-running deflation and launched an unlimited asset purchase scheme to kick-start the limp economy.

But the new plan was largely in line with market expectations, which pressured the greenback against the yen as disappointed traders pinning their hopes on more aggressive easing sold off the pair.

The greenback fell to Y88.57 in Tokyo morning trade, against Y88.68 in New York on Tuesday.

The euro also slipped to Y117.94 from Y118.14 in New York and to $US1.3313 from $US1.3321.